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12 Individuals Charged in $263 Million RICO Crypto Theft Case

A recent four-count superseding indictment has added twelve new defendants to a major RICO (Racketeer Influenced and Corrupt Organizations) crypto theft case. The charges, unsealed this week in the U.S. District Court, expand the case against alleged ringleader Malone Lam and other members of a cyber-enabled criminal enterprise that operated across the United States and internationally from October 2023 through March 2025. The indictment includes charges for RICO conspiracy, wire fraud, money laundering, and obstruction of justice.

Background of the Criminal Enterprise

The indictment reveals that the group’s operations stemmed from friendships formed on online gaming platforms, which later evolved into a sophisticated network of hackers, organizers, social engineers, burglars, and money launderers. Members allegedly targeted victims by purchasing stolen databases to identify individuals with substantial cryptocurrency holdings. Using social engineering tactics such as cold calls impersonating cybersecurity professionals, they tricked victims into divulging sensitive access information.

Once access was gained, the group stole cryptocurrencies and obscured their activities by transferring funds through crypto mixers, peel chains, and VPNs. In some cases, they even resorted to breaking into victims’ homes to steal hardware crypto wallets.

Lavish Lifestyle Funded by Crypto Theft

The criminal enterprise reportedly used their illicit gains to finance an extravagant lifestyle. This included spending up to $500,000 per evening at nightclubs, purchasing luxury handbags and watches worth hundreds of thousands of dollars, and acquiring designer clothing. They also chartered private jets, hired bodyguards, and owned a fleet of at least 28 exotic cars valued between $100,000 and $3.8 million. Additionally, the group rented luxury homes in Los Angeles, Miami, and the Hamptons.

Key Figures and Notable Incidents

Malone Lam, believed to be the leader of the operation, was arrested in September last year. One notable incident involved Lam contacting a victim in Washington, D.C., posing as a cybersecurity expert, and tricking them into granting access to their digital wallet. Lam allegedly drained over 4,100 Bitcoin from the wallet—valued at more than $230 million at the time—which accounted for the majority of the group’s $263 million haul.

“Even after his arrest, Lam is accused of continuing to operate the criminal enterprise from jail.”

While in pretrial detention, Lam reportedly hacked into a victim’s iCloud account to track their location. Meanwhile, another member, Marlon Ferro, allegedly broke into the victim’s home to steal their hardware crypto wallet.

Additional Defendants and Charges

Other key members of the group include Kunal Mehta, Hamza Doost, Joel Cortez, and Evan Tangeman, who were charged with laundering stolen cryptocurrency and other offenses. Several suspects were arrested in California, while two remain at large and are believed to be in Dubai.

Lessons for Crypto Investors

This case serves as a cautionary tale for cryptocurrency holders. Protecting your digital assets requires vigilance and robust security measures. Here are some tips to safeguard your crypto holdings:

  • Use hardware wallets: Store your cryptocurrency offline in a hardware wallet to minimize exposure to cyber threats.
  • Enable two-factor authentication (2FA): Add an extra layer of security to your accounts by enabling 2FA.
  • Avoid sharing sensitive information: Be cautious of unsolicited calls or emails asking for access credentials. Legitimate organizations will never request this information.
  • Regularly update passwords: Use strong, unique passwords and update them frequently.
  • Stay informed: Educate yourself on the latest security practices and emerging threats in the cryptocurrency space.

The $263 million RICO crypto theft case highlights the importance of understanding the risks associated with cryptocurrency investments. By implementing strong security practices, investors can reduce the likelihood of falling victim to sophisticated scams.

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